5 Tips On Choosing The Best Critical Illness Insurance Plan
Now more than ever, working professionals, businessmen and entrepreneurs are at a high risk of developing a slew of lifestyle diseases. The news is quick to report incidents of heart attacks, cancer and strokes among people as young as 35 years of age. Although a health insurance plan does cover hospitalization expense, it fails to take into account the loss of income that arises from being diagnosed with a critical illness, the significant cost of treatment and the payment of any loans.
This is where serious illness insurance comes into the picture. In simple terms, a critical illness plan provides a lump sum amount which is equal to the total sum insured to the policy holder upon being diagnosed with a critical illness such as stroke, cancer, kidney failure, heart attack, bacterial meningitis, etc.
Unlike health insurance, in the best critical illness insurance, the insurer doesn’t need to reimburse the hospitalization fees. He or she will acquire the benefits as soon as the critical illness diagnosis is confirmed.
So, how can you get the best critical illness cover from the myriad insurance plans offered by several insurance companies?
Here are five tips to choose the best critical illness insurance help you:
1. Find Out the List of Diseases and the Coverage Amount
Usually, a serious illness insurance covers anywhere between 7 to 20 debilitating ailments. It is a good idea to check the list of diseases and compare the coverage amount of various insurance providers before deciding to purchase the best critical illness insurance plan. As a rule of thumb, the coverage amount is more than rupees 1 lakh.
2. Waiting and Survival Period
A major difference between a health insurance and a critical illness plan is that the policy holder needs to survive for a period of at least 30 days from the date of the diagnosis of the critical illness in order to make a claim. In the case of their unfortunate demise, the policy holder or his dependent cannot make a claim. Furthermore, there is usually a waiting period of 3 months. However, the survival and waiting period can be different for different insurance service providers.
3. Family Coverage Vs. Individual Coverage
Just like health insurance, serious illness insurance gives the option of covering an individual or the whole family. Generally, insurance companies advice the breadwinner of the family to buy this type of insurance since the household’s income is dependent on him or her. A loss of income from being diagnosed with a serious disease will inhibit their earnings.
4. Claim Settlement Process
Always speak to your insurance service provider about the process of settling a claim before deciding to buy the best critical illness cover. Also get familiar with the terms and conditions.
5. Combing Serious Illness Insurance with Your Existing Health Insurance
A lot of insurance companies provide this option but it’s important to conduct research before agreeing to club your existing health insurance with a serious illness insurance policy.
With the rising medical cost and hospitals stocking on expensive super specialty equipment, getting the best critical illness insurance plan for you and your family is of paramount importance.